Risk-free monthly lease rate

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Suppose an H1200 supercomputer has a cost of $500,000 and will have a residual market value of $100,000 in 5 years. The risk-free interest rate is 6.1% APR with monthly compounding.

a) What is the risk-free monthly lease rate for a 5-year lease in a perfect market?

The risk-free monthly lease rate for a 5-year lease in a perfect market is $.........................(Round to the nearest dollar.)

b) What would be the monthly payment for a 5-year $500,000 risk-free loan to purchase the H1200?

The monthly payment for the loan is $........................... (Round to the nearest dollar.)

Reference no: EM131027145

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